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Trump Moves to Fill Fed Vacancy to Secure Interest-Rate Cuts

Governor Adriana Kugler’s departure gives President Trump a slot to nominate a replacement who could tip votes toward cutting interest rates

Overview

  • Governor Adriana Kugler will step down from the Fed Board on August 8, creating the first open seat since her term was set to run through January 2026.
  • President Trump intends to announce a nominee for the remaining term and must obtain Senate confirmation, a process eased by Republican control of the chamber.
  • Reports indicate Kevin Hassett, Kevin Warsh and current Governor Christopher Waller are among four contenders under consideration for the vacancy.
  • Trump’s escalated attacks on Jerome Powell as a “stubborn dummy” reflect his insistence on deeper rate cuts that the Fed has held off delivering.
  • Experts warn that adding governors aligned with aggressive easing could compromise the Fed’s institutional independence even as chair removal remains legally murky.